India firm on signing FTA with Asean in Chiang Mai
Bernama | November 25, 2008 17:05 PM
India Firm On Signing FTA With Asean In Chiang Mai
By P. Vijian
NEW DELHI, Nov 25 (Bernama) — India is firm in signing the much-awaited Asean-India Free Trade Agreement (FTA) in Chiang Mai, Thailand, next month despite some teething problems that may further delay the trade pact, said a top trade official.
Indian observers note that the slow response from Asean’s older members like the Philippines and Thailand, to obtain their respective parliament approvals could possibly impede the signing process
"We are ready to sign even other countries delay it. Only the Philippines is yet to give their offered list and Thailand may have some problems, they may not get the cabinet approval by that time. But it is okay, they can sign later," India’s Commerce and Industry Ministry Joint Secretary P.K. Dass told Bernama.
With the political pressure mounting in Thailand, there is a growing concern whether the Thais could get the parliament’s approval on time while the Philippines also needed to obtain their legislatures endorsement.
Asean members and India are scheduled to sign the FTA on Dec 17 during the Asean-India Summit in the northern city of Chiang Mai, and the FTA is expected to come on stream on Jan 1, 2009, after which duties of at least 80 percent of traded goods would be at zero.
The 10-member regional grouping and India, their dialogue partner, begun negotiations six years ago, but deep differences in their respective negative and sensitive items lists delayed negotiations and the conclusion of the FTA itself.
However, last August the trade partners managed to strike a deal, which can raise the bilateral trade between both parties from the current RM72 billion (US$20 billion) to over RM187 billion (US$52 billion) by 2010.
At the same time, it will open up a market for 1.7 billion with a combined gross domestic product of RM8.64 trillion (US$2.4 trillion).
Dass, who was attending the one-day conference on "Asean-Economic Partnerships: Trade and Investment Opportunities in Delhi", said all member countries have agreed to sign but there were some minor issues that needed to be addressed.
